Roland Krueger says the Q30 is "finally have the right car for the right segment in Europe."

Infiniti is bullish about its future in Europe. Nissan's premium brand started production of the new Q30 compact premium hatchback in Sunderland, England, in December and will add output of the QX30 compact crossover at the plant later this year. With those two additions, Infiniti CEO Roland Krueger expects 2016 to be a breakout year for Nissan's premium brand. He also revealed his alternative powertrain preferences in an interview with Automotive News Europe Correspondent Bruce Gain.

How will Q30 help Infiniti in Europe?

This car is definitely a game changer for us. We finally have the right car for the right segment in Europe.

What is your midterm sales target?

We don't communicate forecasts, but we want to continue growing. We are confident that we can.

Do you plan to offer more hybrids and other alternative powertrains?

We already have hybrids and will continue to develop them. Nissan is also the worldwide leader in electric vehicles. Nissan has key know-how and the capability to further develop this technology, which we at Infiniti are also utilizing. Let’s call it the electrification of drivetrains, which will be a key competence that we get from Nissan.

Meet the boss

NAME: Roland Krueger

TITLE: Infiniti CEO

AGE: 50

MAIN CHALLENGES: Establishing Infiniti as a strong alternative to German premium brands in Europe.

Are all-electric models off the table?

Performance and the range are very important in the premium segment, so we believe that for Infiniti a hybrid or plug-in hybrid is the right proposition at this time.

What is the status of your autonomous driving development?

The Q50, which is our main vehicle in the D-segment (midsize), already has autonomous drive features, and we are the first company to offer steer-by-wire.

Where will you launch your autonomous driving features first?

There is a certain cadence, but when we offer something, we offer it worldwide.

We have a lot of opportunities in the U.S. with the dealer network being profitable again. There's a lot of momentum in that market. The big opportunity is in China, where we just started local production. And the biggest growth opportunity in the small car space is actually in Western Europe.

Is Europe your toughest market?

Europe has a very specific market composition. Hatchbacks are much more dominant in Europe than they are in other markets. In addition, you see a lot of fleet and third-party lease sales in Europe. That is very different from other markets so, together with partners, we have developed new service packages, different lease offers, and extended warranty packages. The total cost of ownership is one of the key drivers for success in Europe because approximately one-third of the market is the third-party lease and fleet business. We need to structure our offerings and prepare our dealer network to cater to those customers.

Do you need more dealers in Europe?

We are not only expanding our dealer network in Europe, but we are also expanding our authorized repair service network, because when selecting a leasing option or a company car, customers want to have a repair service center nearby. That’s how the market is composed and we have taken great efforts to prepare our network for that.

Are Audi and BMW your key competitors in Europe?

We are targeting premium buyers who would like to switch to another brand as an alternative. We describe ourselves as a challenger brand. We are aware that we are still a small player, but we offer an alternative product. With our products and designs, I believe we have a real opportunity.

Is design the key to setting Infiniti apart from rivals?

It’s the attraction of the car at first glance. If you then drive the car, you see that we designed a very Infiniti-specific way of handling, especially the steering and the suspension settings. There's a very nice balance between the performance-oriented dynamic steering and the comfortable steering setting. We did this because there are very different road conditions in Europe. We wanted to cater to those road conditions.